Can the IRS Require Odometer Readings with the Mileage Rate?

When it comes to calculating a deduction for the business miles you drive, Uncle Sam gives you two choices. You can use…

1. The IRS standard mileage method

or

2. The actual vehicle expense method

In this issue of the Tax Reduction Letter we’ll explain everything you need to know if you’re using the IRS mileage method.

Don’t miss this important information. We won’t steer you wrong when you read my new article titled Q&A: Can the IRS Require Odometer Readings with the Mileage Rate?

Three ways our fact-filled article can help you:

1. We’ll explain why the IRS can require odometer readings to prove your deduction claim. The IRS is simply asking you to prove your mileage as required by law. The request for the odometer readings at or near the beginning and end of the year is a reasonable, if bothersome, request. You’ll get the whole story when you read the full article.
2. You’ll learn why the standard mileage rate does not reduce the need for vehicle mileage records. The need for the appropriate records that prove business mileage do not change when you use the IRS standard mileage rate. They are the same mileage records you need when using the actual expense method. We’ll give you all the details when you read the full article.
3. We’ll tell you what the IRS tells its own examiners. The IRS instructions are simple: “To verify total miles for the year, the taxpayer should provide repair receipts, inspection slips or any other records showing total mileage at the beginning of the year as well as at the end of the year.” We’ve got additional important information waiting for you when you read the full article.